Terry Holohan: Perth-based miner Resolute confirms executives detained in Mali after talks with tax officials

Perth-based gold miner Resolute Mining has confirmed chief executive Terry Holohan has been detained in Mali but maintains the allegations against him and other executives are “unsubstantiated”.

In a statement, Resolute confirmed Mr Holohan and two Resolute employees were “unexpectedly detained” by Mali government officials after meetings with mining and tax authorities in the capital Bamako on Friday.

Confirmation of the detention sent Resolute’s share price plummeting in early trade on Monday, down 30 per cent to 47.5¢.

The executives were in talks about Resolute’s business practices in Mali as well as progressing “open claims” levelled against the company, which it denies, the statement read.

“Resolute has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made,” the statement, authorised by chair Andrew Wray, said.

The West Australian understands Mr Holohan is a British national who lives in Hungary. The two other Resolute executives are reportedly based in Perth.

The Department of Foreign Affairs and Trade does not have a direct consular role in the case given Mr Holohan is not an Australian citizen but it is understood to be aware of the situation and is engaging with foreign embassies in the region.

Premier Roger Cook said he understood Mr Holohan was not harmed during the ordeal and was being looked after.

“Obviously, this is a very concerning issue for both his company, and obviously his family, and we hope he’s OK and will be able to come home soon,” Mr Cook said.

Mr Cook said the situation underscored the risks of mining operations in Africa.

Resolute and other foreign miners have been under growing pressure since the military seized power in Mali and pushed for greater control of the impoverished nation’s lucrative resources industry.

Malian President Assimi Goita last year signed off a new mining code allowing the State and local investors to acquire up to 35 per cent of mining projects, up from 20 per cent.

Resolute has an 80 per cent stake in a mining operation in Syama in south-west Mali, with the Mali government owning the remaining 20 per cent, according to the company’s website.

Mining industry insiders told The West on Sunday that Mr Holohan’s arrest was part of strong-arm tactics being used to force foreign-owned miners to comply with the code.

“It’s a formula now,” said one company boss operating in West Africa who did not want to be identified.

Another who has worked in the country said: “You renegotiate if you want to remain in Mali, it’s that simple. The writing has been on the wall in Mali now for some time, and it’s red, it’s large and it’s concerning.”

Two months ago, the junta briefly jailed four of Canadian miner Barrick’s local executives over alleged “financial crimes” amid long-running talks on the implementation of new rules governing its Loulo-Gounkoto project, one of Mali’s biggest gold mines.

In its statement, Resolute was in talks with the Mali government to “secure the long-term future” of the Syama mine.

“The upmost priority remains the safety and wellbeing of its employees who are receiving support on the ground from the UK and international embassies and consulates.

“The company will provide a further update on the situation as appropriate.”

Mr Holohan was appointed chief executive of Resolute in April 2022 after joining the company as chief operating officer 12 months earlier.

He has been in the mining industry for more than 40 years, including 30 years working on precious and base metals projects in Africa.